EFI_Capability_Description_Sample_20161213.docx

United States Army

Army Enhanced Financial Integration

Capability Description Sample

December 8, 2016 The Capability Description Sample for Foreign Military Sales (FMS) Unfunded Civilian Retirement (UCR) Functionality Request is traceable to the Financial Compliance & Asset Accountability within the EFI problem statement. See below for extract of Financial Compliance & Asset Accountability description, which is followed by the FMS UCR Functionality Request capability description.

Financial Compliance & Asset Accountability (Stewardship):

Financial Compliance - The 2010 National Defense Authorization Act (NDAA) mandated the Department of Defense (DoD) be audit ready on all financial statements, by the end of 20174. To comply with the 2010 NDAA requirement, the Army’s portfolio of business systems must implement standard business processes and data standards as published by the DoD Comptroller and various federal entities. Additionally, lack of compliance leads to reduced interoperability between business systems, inaccurate financial reporting, and risk of not enabling strong internal controls that lead to improved accountability and transparency in financial operations.

GFEBS is required to comply with many data standards, including the following:

Financial Data Standards - Currently, GFEBS is enhancing existing DoD Standard Financial Information Structure (SFIS) capabilities to achieve SFIS 10 compliance. SFIS 10 updates have required significant support from government and systems integrator resources across a nine- month time span, consuming a majority of GFEBS annual funding and resource capacity. Most importantly, SFIS updates will continue to be passed along from OSD, requiring additional customization to GFEBS.

Real Property Data Standards – The Real Property Information Model (RPIM), published annually, requires compliance from all DoD systems which maintain Real Property information. Similar to SFIS 10 updates, annual RPIM updates vary in complexity and overall impact to GFEBS. The Army must continue to account and plan for future mandatory RPIM updates in GFEBS in order to meet the DoD requirement of having mission- critical assets validated as audit-ready for existence and completeness.

Asset Accountability (Stewardship) - In addition to maintaining compliant business systems, the Army’s Enhanced Financial Integration solution will address current asset accountability shortfall by further enhancing integration with Real Property systems such as Real Estate Management Information System (REMIS), Rental Facility Management Information System (RFMIS) and Planning Resource Infrastructure Development and Evaluation (PRIDE). Currently, REMIS, RFMIS and PRIDE data is stagnant within GFEBS, which prevents accurate depreciation and comprehensive reporting. By establishing integration with REMIS, REFMIS and PRIDE, GFEBS enable the following activities:

· Depreciation according to DoD standards

· Comprehensive reporting

· Data integrity

Addressing the current gaps with real property assets and associated work management functions (plant maintenance and project systems) will increase the Army's ability to have strong internal controls over the real property inventory, allow for the capture of costs associated with facility sustainment and minor construction, and have proper processes and procedures in place to properly capture the inventory and financial impacts of real property assets.

FMS UCR Functionality Request

Per the DoD FMR, Volume 15, Chapter 7, part 07020(c), “The Unfunded Civilian Retirement (UCR) factor is applied to the base salary, with leave and holiday acceleration when applicable, to recover retirement, postretirement health benefits and post-retirement life insurance costs incurred by USG.” The Army, per this regulation, is allowed to apply Unfunded Civilian Retirement (UCR) charges to FMS Customers of the US Government based on the Army Labor that is charged to the FMS customer. The FMS community requires an automated process that will post the appropriate FMS UCR to be A) charged to the FMS customer, and B) recoup the cost into the Unfunded Civilian retirement account (US Treasury Trust account for current and future retirement costs of US Government Employees). GFEBS will need to pass this data to external systems in alignment with existing FMS processes. In order to process UCR, the base rate is multiplied by the hours charged to an FMS case, and then multiplied by the annual UCR factor that is published with Civilian Fringe Benefit Rates. The established process has an audit trail and adheres to policy and expectations with foreign customers. It must include the ability to view all necessary records in one report to assist with calculating in accordance with Policy, provide a complete log of change history, and easily identify areas for review and compliancy.

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